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Q:
How big is the Donlin Gold property? Describe its exploration potential beyond the 39-million-ounce resource already identified – and what that represents to Calista and The Kuskokwim Corporation (TKC) shareholders.
Richard Williams
vice president, engineering and development NOVAGOLD
Maver Carey
president and CEO
The Kuskokwim Corporation
A:
A:
Andrew Guy
president and CEO Calista Corporation
A:
Reserves & Resources Growth
M&I Au Resources (Moz)
40.0 35.0 30.0 25.0 20.0
16.6 15.0
10.0 5.0
37.9 37.9 39.0
2008 2009 2010 2011
35.3 29.4
2006 2007
Donlin Gold data as per NOVAGOLD public documents. Represents 100% of measured and indicated resources of which NOVAGOLD’s share represents 50%. Measured and indicated resources are inclusive of proven and probable reserves. See Reserves & Resources Footnotes on page 31.
16
Donlin Gold has excellent exploration potential, with the opportunity to expand the current open-pit resource both along strike and at depth. Considering that the current pit occupies approximately 3 kilometers of an 8-kilometer mineralized belt, we believe it’s likely that either Donlin Gold’s mine life (already measured in decades) or its ultimate production profile – or both – will be greater than anticipated. Additionally, the resource pit shell area covers approximately 1,600 acres, comprising 2 percent of the entire land package. And there may be additional gold targets.
With mine infrastructure in place, additional gold resources on the large mineralized property within the lease area will become more accessible to development. Additionally, other mineral properties in the region, both on and off ANCSA lands, will become more attractive to future explorers and investors. The cumulative successes will make the industry more sustainable – and that will benefit the economy of the Calista region as a whole.
The Yukon-Kuskokwim region is one of the most culturally vibrant and beautiful parts of Alaska, but it is also the poorest region in the state. Our people have very limited employment opportunities and most live below poverty standards. Thus, Donlin Gold’s continued presence in the region over the past two decades – and the partnership we’ve developed through the updated Surface Use Agreement – represent tremendous opportunities for the shareholders of our 10 villages and the broader Yukon-Kuskokwim community.
Subsistence is a core component of our way of life. But
in today’s world, our communities cannot thrive without wage employment, educational and training opportunities, and access to health care. Calista selected the mineral rights at Donlin and TKC the surface lands specifically so that our shareholders would benefit from the development of its mineral endowment. The project has the potential to create jobs and financial benefits
for TKC and the people in the region, while respecting our culture, our values, and our home – enabling our shareholders to continue their traditional ways of life for generations to come.
PEA
Feasibility Study
Updated Feasibility Study